- XLM/USD is falling for the third straight day on Sunday.
- $0.53 support appears at risk after the double top reversal on the 1D chart.
- RSI points south towards the midline as the XLM price eases from record highs.
Stellar Lumens (XLM/USD) is looking to extend its correction from record highs of $0.7165 into the third consecutive on Sunday, as the bears retain complete control amid a selling wave witnessed across the crypto board.
The XLM price eyes deeper losses in the session ahead, as the technical setup remains tilted in favor of the bearish traders. At the press time, the altcoin trades around $0.5950, shedding about 3% so far this Sunday.
XLM/USD: Bearish potential in place, with losses to deepen below Thursday’s low
XLM/USD: Daily chart
As observed on the daily chart, XLM/USD is challenging Thursday’s low at $0.5781, as it extends its double top bearish reversal.
The 14-day relative strength index (RSI) points south towards the midline, having taken a sharp U-turn from the higher levels, suggesting weakening bullish momentum.
Therefore, the XLM sellers need a sustained move below Thursday’s low to extend their control.
The next crucial cap awaits near the $0.53 demand area, the confluence of the 21-daily moving average (DMA) and the ascending trendline support, which connects the two higher lows on the said time frame.
The 50-DMA support at $0.4971 could challenge the bearish commitments if the correction from all-time highs deepens.
However, the price of Stellar Lumens could rebound towards the $0.65 mark should the $0.53 support hold.
Next in sight for the XLM buyers remain the record highs above $0.70.